Zomato's loss widens to Rs. 359cr despite 75% revenue increase
What's the story
Food delivery platform Zomato released a contrasting March quarter report. In Q4 of FY22, the company posted a consolidated net loss of Rs. 359.7 crore, up from Rs. 134.2 crore in Q4 of FY21. The revenue climbed 75.01% to Rs. 1,211.8 crore from 692.4 crore year-on-year (YoY). The company's average monthly users rose to "an all time high of 15.7 million."
Context
Why does this story matter?
India's largest food delivery platform Zomato closed out the last quarter of FY22 in a bittersweet fashion. However, for a company whose expenses went from Rs. 885 crore to Rs. 1,701 crore year-on-year, it shouldn't come as a surprise. Looking at the future prospects, shares of Zomato rallied over 17% to Rs. 66 apiece on the BSE today.
Stats rundown
Zomato's gross order value increased by 77%
In Q4 FY22, Zomato's net loss was Rs. 359.7 crore. The company's operating revenue in Q4 was Rs. 1,211.8 core, while it reported an EBITDA loss of Rs. 449.7 crore. During this time, it increased its presence to 300+ new cities, and its gross order value increased by 77% YoY to Rs. 58.5 billion. The average order value was Rs. 398 in this quarter.
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The company's revenue saw an over two-fold increase in FY22
In the fiscal year of 2022, Zomato recorded operating revenue of Rs. 4,192.4 crore, up from Rs. 1,993.8 crore in FY21. The company's loss increased to Rs. 1,222.5 crore in FY22 from Rs. 816.4 crore in FY21.
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Accelerating growth while reducing losses is the future: CEO
Deepinder Goyal, CEO of Zomato, said, "We are clear on what our long term shareholders expect of us and we are working hard to deliver on both growth and profitability expectations." The company said that the losses will be trimmed by an "improvement in contribution margin" of the business and "operating leverage playing out as our revenue is growing faster than our fixed costs."
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Zomato's share price saw massive uptick after Q4 report
Despite posting huge losses in Q4 FY22, Zomato's shares opened at Rs. 66/share on BSE on Tuesday, a massive leap from the previous closing price of Rs. 57.05. The stock closed at Rs. 65.45 apiece today.